Things continue to look dicey for the U.S. economy and stock market.
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Things continue to look dicey for the U.S. economy and stock market.
By Rae Wee SINGAPORE, May 5 (Reuters) - Stocks in Asia slid on Tuesday while oil prices eased but remained well above $100 a barrel, as the U.S. and Iran continue to work towards a truce while at the

<body><p>STORY: U.S. stocks ended lower after a South Korean ship was hit by an explosion in the Strait of Hormuz.</p><p>The Dow fell more than one percent, the S&P 500 dropped four tenths of one percent after hitting a record high Friday and the Nasdaq slid about two tenths. It also climbed to a new high Friday.</p><p>Energy stocks rose after reports of the latest confrontations which appeared likely to persuade commercial shippers the strait was still unsafe after U.S. President Donald Trump said the U.S. Navy would open it.</p><p>Also, the United Arab Emirates reported a fire at an oil installation following an Iranian drone attack.</p><p>Meanwhile, in the U.S., earnings continue to far outpace predictions. S&P 500 companies are expected to post aggregate earnings growth of 28% year-over-year for the first quarter, double the expectation of 14% at the start of April, according to LSEG.</p><p>Brad Bernstein, managing director at UBS Private Wealth Management remains optimistic about stocks.</p><p>"I think markets look great going into the rest of the year. As long as this war with Iran ends, because we have incredible earnings."</p><p>(FLASH)</p><p>"Revenue growth is the best it's been in five years. Consumer spending, if you look at bank earnings, continues to be better than expected. And when you look at the underpinnings of the economy, such as manufacturing growth, we're seeing a lot of new order spend and increase in the underlying economy of manufacturing, which is very bullish."</p><p>:: Ebay</p><p>Individual stocks on the move Monday included GameStop which fell 10% after the video game retailer offered to buy much larger eBay for about $56 billion in a cash-and-stock deal. Shares of Ebay advanced 5%.</p><p>:: Amazon</p><p>Amazon shares gained after the e-commerce giant said it was rolling out "Amazon Supply Chain Services," opening up its logistics network for other businesses to use.</p><p>That hurt shares of UPS which plunged 10.5%, and FedEx which fell 9%.</p></body>
Oil prices rose sharply and major stock indexes fell as military tensions escalated in the Strait of Hormuz. Fighting in the Iran war flared for the first time in weeks, and strikes on a crucial United Arab Emirates oil port and several ships tested a shaky cease-fire. Futures for Brent crude, the international benchmark, rose 6% to about $114 a barrel.
U.S. stocks fell from their record heights, while oil prices jumped following escalations in the Middle East that may undermine the ceasefire in the war with Iran. The S&P 500 fell 0.4% Monday, coming off its latest all-time high. The Dow Jones Industrial Average dropped 1.1%, and the Nasdaq composite slipped 0.2%.
Cogent stock is looking like one of the stock market's biggest losers today.
The outgoing Fed chair put the spotlight of higher inflation squarely on the president's shoulders.
An impending shift at America's foremost financial institution spells trouble for Wall Street.
Meta served up strong quarterly results, but investors saw some problem points in its latest report.
The April jobs report, earnings reports from major semiconductor companies, and a strong start to the month for US equities outline a busy week for investors.
Warsh's testimony before the Senate Banking Committee points to foundational changes at the Fed.

<body><p>STORY: U.S. stocks ended mostly higher on Friday, with the Dow the only outlier, dipping about three-tenths of a percent, while the S&P 500 gained about three-tenths of a percent and the Nasdaq climbed nine-tenths of a percent.</p><p>Both the S&P 500 and the Nasdaq logged their sixth consecutive week of gains, their longest weekly winning stretches since October of 2024.</p><p>It was a big week for corporate earnings, with five of the Magnificent Seven megacaps reporting.</p><p>Among them, Apple climbed more than 3% on Friday, a day after the tech giant provided a solid sales forecast, touting strong demand for its flagship iPhone 17 and the MacBook Neo.</p><p>Analysts now see overall first-quarter earnings growth of nearly 28% year-over-year, according to LSEG I/B/E/S Estimates.</p><p>That's an 11.7 percentage point increase from where the estimate stood a week ago, and marks the biggest earnings growth since the fourth quarter of 2021.</p><p>Melissa Brown is managing director of investment decision research at SimCorp.</p><p>"I think we're just seeing the continuation of this AI trade and maybe the complete ignoring of some of the other red flags that are out there - higher oil prices leading to higher inflation, you know, many other things that might give investors pause. But we're coming through a good earning season, particularly for some of these tech companies, and investors are, I guess, saying it's still time to buy there."</p><p>Among other movers, shares of Atlassian surged more than 29% after the enterprise software firm hiked its forecast. Peers Salesforce and ServiceNow also gained.</p><p>Shares of Reddit jumped 13% after the social media site gave an upbeat quarterly revenue forecast.</p><p>On the flip side, shares of Roblox tumbled more than 18% after the online game platform cut its annual bookings forecast. </p></body>